Bitcoin Drop Signals a Market Bottom

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• Analysts expect Bitcoin to form a bottom within days.
  
• Current prices may offer a “generational opportunity” for long-term buyers.
  
• Tom Lee predicts Bitcoin could hit new all-time highs by year-end.

Bitcoin’s sharp slide below $90,000 this week has stirred fresh debate on whether the crypto market is approaching a turning point. Despite heightened anxiety across global markets, several well-known analysts believe Bitcoin may be only days away from stabilizing—and potentially reversing course.

Market Stress Builds, but Signs of Exhaustion Emerge

BitMine chairman Tom Lee and Bitwise CIO Matt Hougan both argue the recent downturn has pushed the market close to its limit. Lee pointed to the lingering impact of the heavy liquidations that hit on Oct. 10 and ongoing uncertainty around whether the U.S. Federal Reserve will cut rates in December.

He said technical signals show sellers may be running out of steam. “There are early signs that a bottom could form this week,” he noted, citing analysis from Demar Analytics.

Bitcoin briefly fell under $90,000, its lowest level since April, before reclaiming ground. The drop followed weeks of ETF outflows, long-term whale selling, and rising geopolitical tension—all factors analysts say have weighed on sentiment.

Analysts Frame Pullback as a Long-Term Buying Window

Hougan echoed Lee’s view and described the current environment as a “generational opportunity” for long-term believers. He said the market’s unease—driven by economic uncertainty, lofty AI sector valuations, and concerns around U.S. trade policy—has pushed risk assets into oversold territory.

According to Hougan, Bitcoin led the downturn and may be the first to stabilize. “I think we’re very close to a bottom,” he said. “For investors looking a year out, this is an appealing entry point.”

New Highs Still Possible by Year-End, Says Lee

Though Bitcoin is now down roughly 28% from its October peak near $126,000, Lee remains optimistic. He expects a rebound in the broader stock market to lift Bitcoin back to new all-time highs before the year ends.

Also Read: Bitcoin ETF Investors Hit Losses as Outflows Surge Across Major Funds

He noted that early-November weakness aligned with expectations and believes a risk-on rally could push Bitcoin higher as sentiment recovers.

While volatility remains high, leading analysts say the latest downturn may be nearing its end. If their outlook holds, the coming weeks could mark a critical setup for the next phase of Bitcoin’s long-term cycle.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.